Galaxy Gaming Stockholders Approve Evolution's $85M Acquisition

acquisition by Evolution Malta Holdings Limited, a subsidiary of Evolution AB, in a transaction valued at approximately $85 million in cash. At a special meeting held on November 12, 2024, Galaxy Gaming’s shareholders voted in favor of the deal, which, upon completion, will see Galaxy Gaming become a privately held company. This acquisition reflects Evolution’s strategic intent to strengthen its portfolio with Galaxy Gaming’s technology and expand its U.S. market footprint.

Strategic Acquisition and Transaction Details

Expected to close by mid-2025, the acquisition is still subject to regulatory approval and other customary closing conditions. Galaxy Gaming will delist from public trading, further solidifying its transition to private ownership under Evolution. According to the acquisition , all Galaxy Gaming shares will cease trading, marking a new era for the company. As Galaxy Gaming’s President and CEO Matt Reback highlighted, the acquisition is a significant milestone that allows Galaxy to “focus on growth and expanding its operations” while drawing on Evolution’s resources to advance product sharing and omni-channel innovation.

The July announcement of the acquisition detailed Evolution AB’s enthusiasm for this acquisition, viewing Galaxy Gaming’s suite of casino table games and technology solutions as a valuable complement to its existing offerings. Evolution CEO Martin Carlesund stated, “Galaxy Gaming’s exceptional products and technology complement our existing portfolio and strengthen our strategic position.” He also noted that Evolution would keep Galaxy Gaming as a separate and independent business unit, ensuring operational continuity by retaining all current management and employees.

Financial and Operational Highlights for Galaxy Gaming

As of Galaxy Gaming’s Q3 2024 results, the company reported a revenue increase of 25% to $7.7 million compared to the same period in the previous year. Despite this growth, Galaxy posted a net loss of $2.2 million due to a 50% rise in selling, general, and istrative expenses. The company attributed this loss largely to the legal expenses tied to the acquisition and increased internal costs. Despite these challenges, Galaxy Gaming provided a strong financial outlook for fiscal year 2024, projecting a net revenue of $29-$30 million and adjusted EBITDA between $12-$13 million.

Galaxy Gaming is well-known for its proprietary table games and technology that serve both physical and online casinos. The company holds 131 licenses globally, including permissions across 28 U.S. states, making it a significant player in the casino table game space. Its products have long been recognized for performance and are backed by a comprehensive system for customers, factors that are likely attractive assets to Evolution in its mission to strengthen its presence in North America.

Evolution’s Growth Strategy and Galaxy Gaming’s Role

Evolution AB, founded in 2006, has developed a reputation as a leading B2B provider of live casino solutions for online gaming operators. This acquisition aligns with Evolution’s overarching strategy to become the top supplier of online casino games worldwide. By adding Galaxy Gaming’s table games and technology to its portfolio, Evolution aims to bolster its licensing capabilities for proprietary table games and expand its offerings within the U.S. online gaming market.

Evolution’s July announcement underscored the acquisition as an opportunity to consolidate two strong, customer-focused teams, offering mutual benefits to stakeholders. Evolution’s vision is to leverage Galaxy’s expertise in the land-based sector and combine it with its own leadership in digital gaming. Carlesund emphasized that this union enables Evolution to diversify its gaming content and expand Galaxy Gaming’s influence beyond traditional markets.

Galaxy Gaming also anticipates positive outcomes from this partnership. Reback expressed confidence in Evolution’s ability to Galaxy Gaming’s long-term goals. “This acquisition by Evolution empowers Galaxy to sustain and maintain its independence,” he explained, “while continuing to focus on growth and expanding its operations.”

As Evolution prepares to integrate Galaxy Gaming, it reaffirms its commitment to bringing exceptional gaming experiences to customers. With a growing portfolio that now includes both live and digital casino gaming solutions, Evolution looks forward to the synergies created through this acquisition and the potential for future growth in the competitive U.S. market.

Source:

“Galaxy Gaming Stockholders Approve Acquisition by Evolution”, Galaxy Gaming, November 12, 2024.